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Clean those piston tops really well. Check with a small magnifying glass to make certain that there are no cracks or holes in the piston. They can be really hard to see in all that dirt.
Are you certain that the valves floated and it wasn't the piston traveling to far out due to bad rod bearings? Less likely but possible is a cracked crankshaft These are possibilities, maybe not highly likely, but not unseen either. You should be able to check without breaking the case.
You can put E cams in a T engine and get a big boost in power, probably enough to break it if you hot rod it to much without the improvements in cooling. Other parts may or may not take it are: the crank, rods, pistons. I understand a lot of people have done this mod (the E cam)and like it.
The T cams can be reground as E's.
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